Reportable Segments (Tables)

6 Months Ended

Jun. 30, 2019

The following tables present a summary of the reportable segments (in thousands):



Three Months Ended June 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	45,025	$	—	$	—		$	45,025
Maintenance reserve revenue	26,475		—		—			26,475
Spare parts and equipment sales	266		14,320		—			14,586
Gain on sale of leased equipment	5,120		—		—			5,120
Other revenue	4,583		31		(23		)	4,591
Total revenue	81,469		14,351		(23		)	95,797

Expenses:
Depreciation and amortization expense	20,023		20		—			20,043
Cost of spare parts and equipment sales	252		12,333		—			12,585
Write-down of equipment	3,262		—		—			3,262
General and administrative	19,919		1,470		—			21,389
Technical expense	1,407		—		—			1,407
Net finance costs:
Interest expense	16,781		—		—			16,781
Loss on debt extinguishment	220		—		—			220
Total finance costs	17,001		—		—			17,001
Total expenses	61,864		13,823		—			75,687
Earnings from operations	$	19,605	$	528	$	(23	)	$	20,110

Three Months Ended June 30, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	43,081	$	—	$	—		$	43,081
Maintenance reserve revenue	22,045		—		—			22,045
Spare parts and equipment sales (2)	—		11,653		—			11,653
Gain on sale of leased equipment (2)	52		—		—			52
Other revenue	1,856		210		(195		)	1,871
Total revenue	67,034		11,863		(195		)	78,702

Expenses:
Depreciation and amortization expense	18,297		87		—			18,384
Cost of spare parts and equipment sales (2)	—		10,305		—			10,305
Write-down of equipment	3,578		—		—			3,578
General and administrative	15,683		1,099		—			16,782
Technical expense	3,232		—		—			3,232
Net finance costs:
Interest expense	15,138		—		—			15,138
Loss on debt extinguishment	—		—		—			—
Total finance costs	15,138		—		—			15,138
Total expenses	55,928		11,491		—			67,419
Earnings from operations	$	11,106	$	372	$	(195	)	$	11,283



Six Months Ended June 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	93,394	$	—	$	—		$	93,394
Maintenance reserve revenue	51,825		—		—			51,825
Spare parts and equipment sales	2,751		29,337		—			32,088
Gain on sale of leased equipment	14,690		—		—			14,690
Other revenue	7,561		125		(117		)	7,569
Total revenue	170,221		29,462		(117		)	199,566

Expenses:
Depreciation and amortization expense	40,259		42		—			40,301
Cost of spare parts and equipment sales	2,088		24,909		—			26,997
Write-down of equipment	4,367		—		—			4,367
General and administrative	39,893		2,936		—			42,829
Technical expense	3,194		1		—			3,195
Net finance costs:
Interest expense	34,660		—		—			34,660
Loss on debt extinguishment	220		—		—			220
Total finance costs	34,880		—		—			34,880
Total expenses	124,681		27,888		—			152,569
Earnings from operations	$	45,540	$	1,574	$	(117	)	$	46,997

Six Months Ended June 30, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	82,726	$	—	$	—		$	82,726
Maintenance reserve revenue	37,485		—		—			37,485
Spare parts and equipment sales (2)	—		24,639		—			24,639
Gain on sale of leased equipment (2)	597		—		—			597
Other revenue	3,706		1,323		(1,277		)	3,752
Total revenue	124,514		25,962		(1,277		)	149,199

Expenses:
Depreciation and amortization expense	35,565		174		—			35,739
Cost of spare parts and equipment sales (2)	—		21,692		—			21,692
Write-down of equipment	3,578		—		—			3,578
General and administrative	30,178		2,215		—			32,393
Technical expense	6,909		—		—			6,909
Net finance costs:
Interest expense	28,732		—		—			28,732
Loss on debt extinguishment	—		—		—			—
Total finance costs	28,732		—		—			28,732
Total expenses	104,962		24,081		—			129,043
Earnings from operations	$	19,552	$	1,881	$	(1,277	)	$	20,156

______________________________


(1)	Represents revenue generated between our operating segments.

(2)

Effective January 1, 2018, the Company adopted ASC 606 and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three and six months ended June 30, 2018 gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item.



	Leasing and Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of June 30, 2019	$	1,874,523	$	56,260	$	—	$	1,930,783
Total assets as of December 31, 2018	$	1,882,860	$	52,083	$	—	$	1,934,943